Question: Could someone help me with a reply to this comment. CAPM= Risk Free Rate + Beta (Market Return-Risk Free Rate) CAPM= 2.82% + 0.94 (10.5%

Could someone help me with a reply to this comment.

CAPM= Risk Free Rate + Beta (Market Return-Risk Free Rate)

CAPM= 2.82% + 0.94 (10.5% - 2.82%)

CAPM=2.82% + (0.94)(7.68)

CAPM= 2.82% + 7.219 = 10.039 = 10.04%

The 52 week return was -7.89%

This shows Exxon is expected to be in the 10% range, when right now they are at the -7% range. If I was to buy stock right now, I would not choose Exxon until they were doing a little better.

Here is the question that was asked.

Company (EXXON)

With the beta, we can use the capital asset pricing model to gain insight to the return investors expect. Then compare that with the 52-week return. Can anyone jump in to do that with this stock?

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